1. Never chase a stock.
2. Buy when markets are in the grip of panic.
3. Only buy fundamentally strong stocks, which are undervalued.
4. Buy stocks grown in top line and bottom line over the past years.
5. Invest in companies with proven management.
6. Avoid loss-making companies.
7. PE Ratio and Growth in earnings per share are the key.
8. Look for the dividend paying record.
9. Invest in stocks for sure returns.
10. Stocks have been the high yielding asset class over the past.
11. Stocks are an asset class.
12. The basic property of any asset class is to grow.
13. Buy when everyone is selling and sell when everyone buys.
14. Invest a fixed amount each month.
Last But not least Trust our tips and then invest to earn huge profit
the best blog to describe indian market and equity
30.4.09
Sharetipsinfo -> Do and dont's for stock market investments
What must I do now?
This is the question probably every equity investor would have asked himself a number of times in the past few months.
With the stock market moving to dizzying heights before succumbing to gravity, it's easy to get nervous or over-excited.
Here's what we suggest you do when the bulls and bears kick up a lot of dust.
What you must NOT do
1. Don't panic
The market is volatile. Accept that. It will keep fluctuating. Don't panic.
If the prices of your shares have plummeted, there is no reason to want to get rid of them in a hurry. Stay invested if nothing fundamental about your company has changed.
Ditto with your mutual fund. Does the Net Asset Value deep dipping and then rising slightly? Hold on. Don't sell unnecessarily.
2. Don't make huge investments
When the market dips, go ahead and buy some stocks. But don't invest huge amounts. Pick up the shares in stages.
Keep some money aside and zero in on a few companies you believe in.
When the market dips --buy them. When the market dips again, , you can pick up some more. Keep buying the shares periodically.
Everyone knows that they should buy when the market has reached its lowest and sell the shares when the market peaks. But the fact remains, no one can time the market.
It is impossible for an individual to state when the share price has reached rock bottom. Instead, buy shares over a period of time; this way, you will average your costs.
Pick a few stocks and invest in them gradually.
Ditto with a mutual fund. Invest small amounts gradually via a Systematic Investment Plan. Here, you invest a fixed amount every month into your fund and you get units allocated to you.
3. Don't chase performance
A stock does not become a good buy simply because its price has been rising phenomenally. Once investors start selling, the price will drop drastically.
Ditto with a mutual fund. Every fund will show a great return in the current bull run. That does not make it a good fund. Track the performance of the fund over a bull and bear market; only then make your choice.
4. Don't ignore expenses
When you buy and sell shares, you will have to pay a brokerage fee and a Securities Transaction Tax. This could nip into your profits specially if you are selling for small gains (where the price of stock has risen by a few rupees).
With mutual funds, if you have already paid an entry load, then you most probably won't have to pay an exit load. Entry loads and exit loads are fees levied on the Net Asset Value (price of a unit of a fund). Entry load is levied when you buy units and an exit load when you sell them.
If you sell your shares of equity funds within a year of buying, you end up paying a short-term capital gains tax of 10% on your profit. If you sell after a year, you pay no tax (long-term capital gains tax is nil).
What you MUST do
1. Get rid of the junk
Any shares you bought but no longer want to keep? If they are showing a profit, you could consider selling them. Even if they are not going to give you a substantial profit, it is time to dump them and utilise the money elsewhere if you no longer believe in them.
Similarly with a dud fund; sell the units and deploy the money in a more fruitful investment.
2. Diversify
Don't just buy stocks in one sector. Make sure you are invested in stocks of various sectors.
Also, when you look at your total equity investments, don't just look at stocks. Look at equity funds as well.
To balance your equity investments, put a portion of your investments in fixed income instruments like the Public Provident Fund, post office deposits, bonds and National Savings Certificates.
If you have none of these or very little investment in these, consider a balanced fund or a debt fund.
3. Believe in your investment
Don't invest in shares based on a tip, no matter who gives it to you.
Tread cautiously. Invest in stocks you truly believe in. Look at the fundamentals. Analyse the company and ask yourself if you want to be part of it.
Are you happy with the way a particular fund manager manages his fund and the objective of the fund? If yes, consider investing in it.
4. Stick to your strategy
If you decided you only want 60% of all your investments in equity, don't over-exceed that limit because the stock market has been delivering great returns
This is the question probably every equity investor would have asked himself a number of times in the past few months.
With the stock market moving to dizzying heights before succumbing to gravity, it's easy to get nervous or over-excited.
Here's what we suggest you do when the bulls and bears kick up a lot of dust.
What you must NOT do
1. Don't panic
The market is volatile. Accept that. It will keep fluctuating. Don't panic.
If the prices of your shares have plummeted, there is no reason to want to get rid of them in a hurry. Stay invested if nothing fundamental about your company has changed.
Ditto with your mutual fund. Does the Net Asset Value deep dipping and then rising slightly? Hold on. Don't sell unnecessarily.
2. Don't make huge investments
When the market dips, go ahead and buy some stocks. But don't invest huge amounts. Pick up the shares in stages.
Keep some money aside and zero in on a few companies you believe in.
When the market dips --buy them. When the market dips again, , you can pick up some more. Keep buying the shares periodically.
Everyone knows that they should buy when the market has reached its lowest and sell the shares when the market peaks. But the fact remains, no one can time the market.
It is impossible for an individual to state when the share price has reached rock bottom. Instead, buy shares over a period of time; this way, you will average your costs.
Pick a few stocks and invest in them gradually.
Ditto with a mutual fund. Invest small amounts gradually via a Systematic Investment Plan. Here, you invest a fixed amount every month into your fund and you get units allocated to you.
3. Don't chase performance
A stock does not become a good buy simply because its price has been rising phenomenally. Once investors start selling, the price will drop drastically.
Ditto with a mutual fund. Every fund will show a great return in the current bull run. That does not make it a good fund. Track the performance of the fund over a bull and bear market; only then make your choice.
4. Don't ignore expenses
When you buy and sell shares, you will have to pay a brokerage fee and a Securities Transaction Tax. This could nip into your profits specially if you are selling for small gains (where the price of stock has risen by a few rupees).
With mutual funds, if you have already paid an entry load, then you most probably won't have to pay an exit load. Entry loads and exit loads are fees levied on the Net Asset Value (price of a unit of a fund). Entry load is levied when you buy units and an exit load when you sell them.
If you sell your shares of equity funds within a year of buying, you end up paying a short-term capital gains tax of 10% on your profit. If you sell after a year, you pay no tax (long-term capital gains tax is nil).
What you MUST do
1. Get rid of the junk
Any shares you bought but no longer want to keep? If they are showing a profit, you could consider selling them. Even if they are not going to give you a substantial profit, it is time to dump them and utilise the money elsewhere if you no longer believe in them.
Similarly with a dud fund; sell the units and deploy the money in a more fruitful investment.
2. Diversify
Don't just buy stocks in one sector. Make sure you are invested in stocks of various sectors.
Also, when you look at your total equity investments, don't just look at stocks. Look at equity funds as well.
To balance your equity investments, put a portion of your investments in fixed income instruments like the Public Provident Fund, post office deposits, bonds and National Savings Certificates.
If you have none of these or very little investment in these, consider a balanced fund or a debt fund.
3. Believe in your investment
Don't invest in shares based on a tip, no matter who gives it to you.
Tread cautiously. Invest in stocks you truly believe in. Look at the fundamentals. Analyse the company and ask yourself if you want to be part of it.
Are you happy with the way a particular fund manager manages his fund and the objective of the fund? If yes, consider investing in it.
4. Stick to your strategy
If you decided you only want 60% of all your investments in equity, don't over-exceed that limit because the stock market has been delivering great returns
Overseas investors’ inflows turn positive
Foreign Institutional Investors (FIIs) have turned net buyers in the Indian markets in 2009.
Consistent inflows from FIIs, especially in April, have resulted in net inflows of Rs 530 crore on a year-to-date basis, according to data available with the SEBI.
FII flows turned net positive this week from being negative a week ago. April alone saw the Indian markets receive net inflows of Rs 6,682 crore from FIIs.
This influx reversed the entire outflow of Rs 6,151 crore in the three months to March 2009.
This sudden arrival of foreign funds was perhaps a key reason for the strong rally witnessed by the Sensex in the current month. Even as the Indian stock market continues to lag a number of global indices in 2009, April has a different story to tell.
The Sensex has been the top performing index among leading global indices this month, with smart returns of 17.5 per cent (in dollar terms) till date.
Sensex in the lead
This is a good 3 percentage points above the next best performing market (Indonesia) during this period.
The Sensex has outperformed major indices in the Americas, Europe and the Asia-Pacific, barring the less significant markets of Italy and Sweden.
Overall, markets in the Asia-Pacific region have turned in better returns in April on the back of increased inflow of funds. According to data provided by EPFR Global, the Asia ex-Japan equity funds alone absorbed $946 million, or a good 51 per cent, of the $1.86 billion net flows into equity funds for the week ended April 22.
Inflows into Asian markets have also received support from their strengthening currencies.
Currencies such as the rupee, won (South Korea), ringgit (Malaysia) and Thai bhat (Thailand) have all marginally strengthened against the US dollar.
The benchmark indices in these countries have as a result delivered superior returns in local currencies when compared with the dollar returns
16.4.09
RIL refinery can sell fuel locally, as EoU status goes
NEW DELHI: The Export Oriented Unit status of Reliance Industries' Jamnagar refinery in Gujarat has ended, allowing the company to sell petrol and diesel locally including through its 1,432 now-closed petrol pumps.
“The EoU status of the 33 million tonnes a year refinery has ended this week” an industry official said. The Jamnagar refinery, which was commissioned in July 1999 and now known as J-1, was converted into an EoU with effect from April 16, 2007.
Reliance Petroleum, a unit of the company, in December 2008 commissioned a new only-for-exports refinery J-2, adjacent to the old unit. The official said Reliance will continue to export most of the fuel from J-1 but will also sell petrol and diesel in d omestic market. It may sell 2.5-3 million tonnes of diesel to public sector fuel retailers - Indian Oil, Bharat Petroleum and Hindustan Petroleum - to meet the deficit they are expected to have in 2009-10.
Also, it may reopen the 1,432 petrol pumps it had shut last year as it could not compete with subsidised fuel sold by public sector retailers. Though the margins on petrol and diesel had turned positive with the fall in international oil prices since Oct ober 2008, Reliance still could not sell fuel from J-1 through the petrol pumps as the EoU status made it prohibitive for the company to sell fuel locally. - PTI
“The EoU status of the 33 million tonnes a year refinery has ended this week” an industry official said. The Jamnagar refinery, which was commissioned in July 1999 and now known as J-1, was converted into an EoU with effect from April 16, 2007.
Reliance Petroleum, a unit of the company, in December 2008 commissioned a new only-for-exports refinery J-2, adjacent to the old unit. The official said Reliance will continue to export most of the fuel from J-1 but will also sell petrol and diesel in d omestic market. It may sell 2.5-3 million tonnes of diesel to public sector fuel retailers - Indian Oil, Bharat Petroleum and Hindustan Petroleum - to meet the deficit they are expected to have in 2009-10.
Also, it may reopen the 1,432 petrol pumps it had shut last year as it could not compete with subsidised fuel sold by public sector retailers. Though the margins on petrol and diesel had turned positive with the fall in international oil prices since Oct ober 2008, Reliance still could not sell fuel from J-1 through the petrol pumps as the EoU status made it prohibitive for the company to sell fuel locally. - PTI
Day Trading Guide
he outlook remains positive as long as DLF trades above Rs 245 level. We recommend a buy with tight stop at Rs 245. The near-term outlook is bullish for ICICI Bank and SBI. We recommend a buy in these two counters. Fresh short position can be initiated if Infosys declines below Rs 1,350 with tight stop-loss. We recommend a buy in L&T and Reliance Capital. We notice formation of hanging man candlestick pattern in Reliance Communications. Fresh short-position can be initiated if the stock declines below Rs 224, with stiff stop. Desist trading in ONGC and RIL for the session. The near-term outlook is cautious for Nifty futures. Avoid trading in Nifty futures for the session.
Five stocks make for 50% of Sensex’s rally
BL Research Bureau Just five stocks from the Sensex-30 basket contributed to one-half of the 3000 point rally of the benchmark index from its March 9 low.The stock of Reliance Industries alone accounted for 24 per cent of the Sensex’s gain. Others such as ICICI Bank, Larsen and Toubro, HDFC and State Bank of India have together contributed another 27 per cent.
Though the Sensex has risen 38 per cent from the low recorded in March, not all the stocks in the 30-stock index have gained as much.
There are stocks in the Sensex basket that have so far returned a relatively muted 9-16 per cent. The stock of Hindustan Unilever is up only 8.8 per cent, NTPC up 12 per cent, Infosys Technologies up 14.5 per cent and Grasim Industries up 16 per cent.
Big gains
Sensex’s current rally appears to be have been supported by five key stocks that have run up over 40 per cent.
The stock of Reliance Industries was the frontrunner with 58 per cent returns and a 739-point contribution to the Sensex rise.
The next top mover was ICICI Bank, which rallied 69 per cent and added 281 points to the Sensex rally. The stocks of Larsen and Toubro, HDFC and State Bank of India have put together added another 567 points.
The contributions of these five stocks alone add up to 1586 points, or one-half of the 3124 point increase in the Sensex.
On percentage basis, though few stocks such as Tata Motors (up 106 per cent), DLF (up 85 per cent), Hindalco (up 64 per cent) and Mahindra and Mahindra (up 50 per cent) made good gains, their individual contribution to Sensex was less than 50 points due to relatively lower weightage in the index.
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